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HomeMy WebLinkAboutItem 10 - Adoption of Ad Valorem Tax RateMEMO TO: HONORABLE MAYOR AND MEMBERS OFF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER [tea' MEETING DATE: SEPTEMBER 6, 2016 SUBJECT: ADOPTION OF AD VALOREM TAX RATE RECOMMENDATION: City Council to consider an ordinance adopting an ad valorem tax rate $0.289271 per $100 valuation for Tax Year 2016 and Fiscal Year (FY 2017) apportioned as follows: For the General Fund, a tax rate of $0.126479 per $100 value; For Debt Service, a tax rate of $0.162792 per $100 value. BACKGROUND: The FY 2017 budget was developed using the following values for tax rate calculation purposes: Total Appraised & Assessed Value $11,205,746,806 Net taxable value $ 7,274,810,676 Taxable value for rollback $ 7,117,459,248 Taxable value for effective rate $ 7,117,459,248 New construction $ 37,353,984 The FY 2016-2017 budget includes the General Fund and Debt Service apportions of the taxes as noted above. The proposed tax rate of $0.289271 is equivalent to the calculated effective tax rate. A copy of the proposed ordinance is attached. Staff recommends approval. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, SETTING THE ANNUAL TAX RATE FOR TAX YEAR 2016 LEVYING TAXES TO BE ASSESSED ON ALL TAXABLE PROPERTY WITHIN THE LIMITS OF THE CITY OF GRAPEVINE, TEXAS; PROVIDING PENALTIES AND INTEREST FOR THE DELINQUENT TAXES; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, THE City Council of Grapevine, Texas has approved an operating budget for the Fiscal Year 2016-2017 (FY 2017), in compliance with appropriate state laws and the Charter of the City of Grapevine; and WHEREAS, public hearings were held on the FY 2017 budget and all interested parties were given an opportunity to be heard for or against any item contained therein; and WHEREAS, an ad valorem tax rate of $0.289271 per $100 valuation has been considered for tax year 2016; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this ordinance to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That a tax rate is hereby levied upon all taxable property in the City of Grapevine, Texas for tax year 2016 at a rate of twenty-eight ninety-two seventy-one hundreds cents ($0.289271) per one hundred dollars ($100.00) valuation. THIS TAX RATE WILL RAISE LESS TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE LOWERED BY 7.31 PERCENT AND WILL LOWER TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $15.59. Section 3. That there shall be and there is hereby levied the following taxes on each one hundred dollars ($100.00) valuation on all taxable property within the City of Grapevine, Texas, to be assessed and collected by the Tax Assessor/Collector and collected for tax year 2016, and said taxes are to be assessed and collected for the purposes and in the amounts hereinafter stipulated, to -wit: A. For the General Fund, a tax rate of $0.126479 per $100 is levied. B. For Debt Service, a tax rate of $0.162792 per $100 is levied. Section 4. That taxes levied by this ordinance shall be due and payable on the first day of October, 2016 and shall become delinquent on the first day of February, 2017, if unpaid. Upon taxes becoming delinquent, interest and penalty will be added as required in Section 33.01 of the Texas Property Tax Code, and shall commence on the first day of February, 2017. The City of Grapevine is hereby authorized to adopt any and all legal remedies provided by the Texas Property Tax Code for the purpose of collecting delinquent taxes. Section 5. That the fact that the fiscal year begins on October 1, 2016 requires that this ordinance be effective upon its passage and adopted to preserve the public peace, property, health, and safety, and shall be in full force and effect from and after its passage and adoption, and an emergency is hereby declared. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, on this the 6th day of September, 2016. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Ordinance No. 2